MARKETING
PLAN
The Kandurata Tea PVT Ltd
Sri Lanka
Name ???
Table of content
1
Introduction
2
1.1
Overview of The Kandurata Tea PVT ltd
2
1.2
The process involved in strategic marketing of Kandurata Tea
3
PVT Ltd
2
Marketing objectives and strategies of The Kandurata Tea PVT
4
Ltd
2.1
Marketing objectives
4
2.2
Marketing strategies
4
2.2.1
Market segmentation
4
2.2.2
Targeting
6
2.2.3
Positioning
7
3
Marketing Mix
8
3.1
Product strategy
8
3.2
Place strategy
8
3.3
Price strategy
9
3.4
Promotion strategy
9
4
Recommendations
10
5
Conclusion
11
References
12
1
1 Introduction
One of the most consumed beverages worldwide is tea. The market for tea is
expanding over time, despite the arrival of alternative beverages. There are various
elements that contribute to the tea market's expansion. Consumers' discretionary
income is steadily rising, which encourages them to buy more things, even those with
higher prices. This enables tea companies to release novel, exclusive, and expensive
blends. In addition, there has been an increase in public awareness of the health
advantages of tea. Tea's potential to fortify teeth and bones, enhance the immune
system, and lower the risk of cancer, kidney stones, and cardiovascular disorders,
among other advantages, is one of these advantages.
All of this knowledge increased the demand for tea. Additionally, tea companies
began incorporating fresh ingredients into blends that appeal to customers who suffer
from widespread medical issues like diabetes and obesity. Because of the growing use
of tea in the cosmetics and beauty sector, the market for tea is growing and becoming
stronger.
This report contains a detailed analysis of the marketing overview, market
segmentation, targeting, and positioning of Sri Lanka's leading tea brand, "Kandurata
Tea PVT Ltd. Here, the company will also discuss the basic marketing strategies of its
products with its customers. Further, the report explores the marketing mix and how
"The Kandurata Tea" conveys these marketing strategies and principles in real life.
Based on the analysis performed, recommendations are provided for better future
performances based on market intelligence.
1.1 Overview of The Kandurata Tea PVT ltd.
“The Kandurata Tea” is a company founded by Gamini Perera in 1999 and the
company can be described as a step to revive the lost quality, authenticity and ethics
in the Ceylon tea industry back. In the past 25 years, Kandurata Tea Company has
been able to popularize the Ceylon Tea brand all over the world by competing with
the Sri Lankan tea market.
Sri Lankan as well as global tea consumers focused on buying high quality tea
products at affordable prices. Kandurata Tea challenged this belief and introduced the
concept of single origin, unblended tea. In the last 25 years, Kandurata tea brand can
be mentioned as a premium company providing high quality tea in the tea market.
Kandurata Tea is considered as one of the best tea brands in Sri Lanka and a leading
company supplying tea to more than 10 countries around the world.
2
1.2
The process involved in strategic marketing of Kandurata Tea PVT Ltd.
Mission
The best-tasting, all-natural, high-quality cup of tea for daily use is what we strive to
offer to our customers. We always work hard at "The Kadurata Tea" to provide the
highest quality tea, customer service, and experience.
Vision
Our goal is to provide our customers with the best quality tea experience. By adding
an excellent tea cup to a healthier and more perfect lifestyle, the perception of tea
among consumers is brought in to a unique place.
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2 Marketing objectives and strategies of The Kandurata Tea PVT
Ltd
In order to properly implement the developed plans, a company must set annual
targets, policies, inspire personnel, and allot resources, according to Macmillan &
Tampo (2000). Building an efficient organizational structure, refocusing marketing
efforts, making budgets, constructing and using information systems, and establishing
a link between employee compensation and organizational performance are all aspects
of strategic implementation.
One of the potential advantages of strategic management, according to Macmillan &
Thampo (2000), is that it ensures that the organization only takes one course or path
towards the accomplishment of its corporate mission, objectives, and success.
(Marketing- Thinking Made easy).
2.1 Marketing objectives
1 The Kandurata Tea PVT Ltd maintains honesty and integrity with every customer,
retailer, wholesaler and all other dealing partners.
2 To increase customer satisfaction by 15% by the last quarter of 2023, while
maintaining the quality and taste of the products, offering the products to the
domestic and international markets.
2.2 Marketing strategies
There are three processes toward an effective customer-driven marketing strategy
such as:
i.
Market Segmentation
ii.
Targeting
iii.
Positioning
2.2.1 Market Segmentation
According to Kotler & Keller (2016), the consumers can be categorized according to
their varying needs and wants. Segmentation involves divide markets into meaningful
customer groups who share a similar set of needs and wants. Initially, "The Kandurata
Tea" observed that other tea brands mainly focused on low-cost products. But by
recognizing that a significant segment of customers have an appetite for high-quality
tea, The Kadurata tea decided to cater to these segments. Accordingly, The Kandurata
tea identifies various customer segments based on customer characteristics such as
geographic, demographic and psychographic and behavioral segmentation such as
customer response as follows.
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i.
Geographic segmentation
Geographically, Kandurata tea products have a good customer base in the USA, India,
and Europe. In addition to this consumer segment ranging from high-income groups
to middle-class groups, "The Kandurata Tea" has segmented its global market based
on geographic criteria such as regions, countries, and cities.
"The Kadurata Tea" online shop distributes its products all over the world and is the
most popular marketing medium among many European and US customers. Here, the
preferences and buying behaviours of customers in selected geographical areas are
mainly considered.
In introducing its products to the market, the company mainly appeals to urban and
semi-urban consumers and has created a high brand image in the international market
compared to some other competitive brands. Accordingly, The Kadurata Tea
Company has succeeded in surpassing the local and international markets.
ii.
Demographic segmentation
According to age, gender, family size, family life cycle, income, occupation,
generation, education, religion, race, and nationality, the market is segmented
according to demographic factors. The most widely used bases for client segmentation
are demographic segmentation factors, which are simple to quantify.
"The Kandurata Tea" has broadly focused on these criteria and introduced a wide
range of products for these consumer groups. The company continues to enhance its
products in terms of quality and taste, focusing equally on male and female consumers
and upper to middle income levels.
"The Kandurata Tea" has a wide selection of products to cater to various age groups
and life phases. As an illustration, premium Ceylon single-origin tea and the Wattle
series are for customers in the middle to older age range. Customers in more healthconscious life stages, such as those between the ages of 30 and 50 and even those
above 50, prefer organic tea selections, natural green tea selections, and decaffeinated
teas. On the other side, young people flavour amusing tea selections, the T-series, and
vibrant tea selections.
iii.
Psychographic segmentation
"The Kandurata Tea" uses psychographics and demographics to better understand
their customers and introduce products based on their lifestyle and values. The
innovations of "The Kandurata Tea" reached many consumer segments very quickly.
At a time when the youth are away from drinking tea due to the traditional image of
tea, new products such as T-Series, Flavoured Tea-Cocktails, T-Mock Tails, and other
hot and iced teas introduced by "Kandurata Tea" are a major reason for popularizing
the brand among the youth community.
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iv.
Behavioral segmentation
"Kandurata Tea" lays particular emphasis on regular use of its products (Usage Rate
and Condition), quality and premium orientation, attention to nutrition information
and health advantages (organization wanted), attentiveness and knowledge, a strong
brand, and middle segment-oriented loyalty.
"Kandurata tea" actively promotes the advantages of tea for your health. For example,
both green and black tea contains significant and distinctive anti-inflammatory
properties that help protect consumers from a range of degenerative illnesses like
heart disease, diabetes, and oral diseases.
2.2.2 Targeting
The strategy used for the company's target market depends on the company's
resources and capabilities, product variability, product life cycle, market variability,
and competitive position. "Kandurata Tea" follows a different marketing approach
and targets different market segments with unique marketing mixes for those
segments. A product, price, placement, and promotion programme designed
specifically for the segment are used.
For example, Kandurata Tea Company observed that the tea used in many hotels and
restaurants was lacking in taste and quality. Based on discussions with chefs, food and
beverage executives, and purchasing executives, the company identified that all of
them needed to provide a unique and innovative experience to their customers.
Accordingly, the company was interested in changing the quality of its products
relative to competing brands.
After identifying untapped teas, "The Kandurata Tea" launched its seven-star luxury
tea experience that added excitement and an innovative tea experience. Today, many
hotels and restaurants use "The Kandurata Tea" because of this targeting strategy.
"The Kandurata Tea" mainly targets the upper and middle classes, and it also targets
the youth community. Women have a significant influence, especially in the
purchasing process, and the company is targeting this group as well. Porter’s five
forces model helps determine the long-run attractiveness of the market or market
segment as follows:
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i.
Threat of rivalry: Brands like Tetley, Lipton, and Twinings offer fierce
competition to Kandurata Tea. The Kandurata Tea Company is promoting its
love of tea and its core principles (honesty, sustainability, the highest
standards of quality, and ethics), offering incredibly luxurious and unique
goods for numerous market categories, and running amazing promotional,
advertising, and social media campaigns to combat the danger of competition.
ii. Threat of new entrants: Due to the lengthy history of supplying those
markets and distinct positioning, the current market categories for Kandurata
tea are at medium-to-low risk of new entrants.
iii. Threat of substitute products: As alternative goods, a number of categories,
including coffee, aerated beverages, and energy drinks, can be named. In
many regions of the world, coffee is still regarded as the primary beverage.
iv. Threat of the buyer’s bargaining power: The abundance of options on the
market, many of which are offered at reduced prices, has boosted bargaining
power. The brand communication strategy and higher product quality control
this threat.
v. Threat of suppliers’ bargaining power: The threat of suppliers' negotiating
strength is minimal because of the tea industry's huge number of suppliers and
cheap switching costs.
2.2.3 Positioning
Establishing a competitive frame of reference and locating the best points of parity
(POPs) and points of difference (PODs) are two tasks necessary for a successful
positioning strategy. (PODs).
Kandurata Tea has managed to occupy a unique position in the minds of certain
consumer segments as "the single origin tea" compared to its competitors. Relative to
other competing brands, Kandurata Tea takes great care in every cup of tea,
packaging, and delivery. This shows how "The Kandurata Tea" has established strong
category membership in target segments and a unique competitive position.
Regarding POPs, "The Kandurata Tea" offers a variety of flavours to appeal to a large
demographic and has opened outlets globally to appeal to many cultures in order to
compete with Twining's and Tetley.
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3.Marketing mix
Four Ps (product, price, place, and promotion) strategies are covered under the
marketing strategies of Kandurata tea. Under this, several marketing strategies are
used, like product innovation, a pricing approach, and promotional planning.
3.1 Product strategy
Product can be analyzed using below attributes;

Packing: Kandurata Tea Company has improved the quality of its products by
using attractive and colorful packaging for them, paying attention to the
condition and packaging while providing high-quality tea to the customers.

Quality level: The company, which uses fresh tea leaves harvested from the
mountains for its products, introduced the products to the market using natural
flavourings. It aims to promote Sri Lankan tea culture worldwide.

Product range and features: A wide variety of products are available from
"The Kandurata Tea," including premium options, gourmet tea options, special
green teas, exotic teas, etc. There are many sizes, flavours (spicy, minty,
sweet, etc.), strengths (light, medium, and strong), and levels of caffeine for
"The Kandurata Tea." (Medium and caffeine-free).

Differentiation: The exceptional quality, wide choice of products, appealing
packaging, promotion of a healthy lifestyle, and brand identity of "The
Kandurata Tea" have effectively set it apart from its rivals.
3.2 Place strategy
While "The Kandurata Tea" relies on foreign wholesalers to make its products widely
available in supermarkets and tea stores, it has its own distribution channels in a
number of other nations. Additionally, "The Kandurata Tea" online business delivers
straight to customers wherever they are in the world, and it is growing quickly
because of how convenient it is. For instance, "The Kandurata Tea" has built its own
channels of distribution in the United Kingdom, Australia, the United States, and
Europe, where consumers prefer to buy goods directly from the manufacturer.
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The Middle East region's "Kandurarata Tea," in contrast, relies on regional
distributors since its clients are more likely to trust the products of local distributors.
For the purpose of promoting its goods and showcasing its love for tea, "The
Kandurata Tea" opened tea boutiques in a few key areas. Additionally, "The
Kandurata Tea" has expanded into the hotel and leisure industries by running Cape
Waligama, Wild Coast Tented Lodge, and Ceylon Tea Trails, three boutique luxury
resorts, in order to promote Ceylon tea while offering a distinctive travel experience.
3.3 Price strategy
Since "The Kandurata Tea" maintains an authentic and conventional manufacturing
process centered on quality, "The Kandurata Tea" has embraced the value-based
pricing strategy. The company is demanding a higher price compared to its
competitors due to its high level of distinctiveness and brand image. The company is
of the opinion that its devoted patrons are not overly price-sensitive but rather seek for
the best products. However, because "The Kandurata Tea" is so dependent on grocery
chains, supplier margins are constantly under pressure to be cut.
3.4 Promotion strategy
Due to intense industry competition and building a strong brand image, "The
Kandurata Tea" has given promotion a high priority. In terms of promotion, "The
Kandurata Tea" is thought to be the most successful tea brand. The Kandurata Tea
promotes its commercial endeavours as acts of humanitarianism that uphold fair trade
and the rights of Sri Lanka's tea sector. By going above and beyond what is typically
expected, "The Kandurata Tea" has been able to win the hearts and minds of its
patrons.
The following strategies are employed by "The Kandurata Tea" to market its goods.
i.
Numerous TV advertising, both domestically and internationally, will
promote products.
ii.
Journals, magazines, and directories
iii.
Due of their extensive reach, social media and the internet are useful for
promotion.
iv.
Products will be promoted on Twitter and the "The Kandurata Tea"
Facebook fan page.
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4 Recommendations
i.
Expand the local market share
The current marketing strategy of "The Kandurata Tea" is heavily centred on the
international market; however, there is more room for growth in the domestic market.
The majority of the population still views tea as a cheap, everyday good, but "The
Kandurata Tea" hopes to change that with its creative marketing strategy. Some of its
products aren't offered in the neighborhood. It is advised to concentrate on various
local populations, including young people. For instance, to compete with soft drinks
like Coca-Cola and Elephant House products (most of which are harmful and have a
high sugar content), "The Kandurata Tea" ice tea can be advertised as a chic and
healthy beverage (added with various fruit flavours) and raise its market share locally.
ii. New series of teas to focused diabetic, cholesterol and heart patients
Customer health consciousness and a desire for extensive health benefits are two
important marketing trends. "The Kandurata Tea" has already embraced these trends
by introducing a variety of herbal infusions and natural green teas. By utilising Sri
Lankan herbals like Kohomba and Kottamalli, it is advised to further develop new
healthy tea varieties for consumers with diabetes, high cholesterol, and heart disease.
This will also fit well with Kandurata Tea's existing marketing plan to promote
Ceylon tea. The business is creative and very dedicated to its research and
development. In order to further boost its market share and brand reputation, "The
Kandurata Tea" can create a new tea series for this market and advertise it globally.
iii. Expansion of t-lounges
To give guests a special tea experience while pairing it with food, Kandurata Tea uses
t-lounges. Only Indonesia, Sri Lanka, the Philippines, and the Middle East currently
have t-lounges. The western market, Europe, and Russia should all be included in the
expansion of t-lounges. These nations can be encouraged to promote alcoholcontaining cocktails and mocktails as well as the idea of pairing cuisine with Ceylon
tea.
iv. Going green
According to contemporary marketing tactics, "The Kandurata Tea" uses its
packaging to advertise its products and give product information. Sustainability must
be incorporated into the product design process for "The Kandurata Tea," as well as
eco-friendly packaging.
It preserves the reputation of the exceptional quality with customers and might pique
their interest in "The Kandurata Tea's consideration of the environment." An
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environmentally friendly, ethically produced product will have a large worldwide
consumer base and a stronger competitive advantage, especially in the next two to
five years.
Therefore, using biodegradable packaging is advised, and effects on environmentally
friendly items can be highlighted to raise customer awareness.
5 Conclusion
Currently, there are numerous multinational corporations competing in the extremely
competitive global tea industry.
In order to compete in this fiercely competitive market, "The Kandurata Tea" must
develop its marketing plan to meet the demands of the external environment.
Globally, "The Kandurata Tea" has carefully positioned itself as the industry pioneer
for tea goods from Ceylon. Kandurata Tea can further enhance its future performance
based on market information by incorporating the suggestions into its current
marketing strategy.
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References

Dilmah product range. Retrieved from https://shop.dilmahtea.com/

Dilmah super brand. Retrieved from //www.superbrands.com
/lkc1/pdf/15_consumerSB.pdf

Dilmah tea. Retrieved from https://www.dilmahtea.com/

H.M.U.N. Herath and S. De Silva .(2011). Strategies for Competitive
Advantage in Value Added Tea Marketing

Kotler,P.,& Keller, K.L. (2016). Marketing Management. Noida, India:
Pearson India Education Services.

Lipton’s marketing strategy from https://www.mbaskool.com/marketingmix/products/17520-lipton.html

Marketing mix of Lipton from https://www.marketing91.com/marketing-mixlipton/ [Original source: https://studycrumb.com/alphabetizer]
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